Microsoft Windows Phone 7 is really pleasing to the eyes, not just its design, but the features as well. Adopting much of its user interface from Microsoft’s Zune media player, Windows Phone 7 Series was announced on Monday at Mobile World Congress. Microsoft has predicted that handsets based on the system will be in stores by December 2010. This is gonna be really exciting!

Steve Ballmer (Microsoft’s CEO) said at the Barcelona launch that Microsoft was taking a new approach with Windows Phone 7 Series in its engagement with developers and partners.

Here’s a video of the Microsoft Windows 7 Phone:

Just a few years ago, Microsoft (MSFT, Fortune 500) was embedded in about a quarter of all smartphones sold. It’s now in less than 10%, with competition coming from the iPhone and BlackBerry. Google (GOOG, Fortune 500)’s Android has only made a crowded space even tougher for Microsoft.

Microsoft Windows Phone 7′s picture album application has become the Pictures Hub, which shows pictures taken on the phone alongside those uploaded by contacts to social networks. An Xbox Live tool also allows users to play online games and manage their games-related social networking on the phone.

Steve Ballmer told CNN that this is a major push for the company to get back in the mobile space. He said 7-based smart phones will be manufactured by the likes of Qualcomm, Samsung, LG, HTC, HP, Dell, Sony Ericsson, Toshiba, and Garmin-Asus.

T-Mobile, Orange, Telefonica, AT&T, Spring and Vodafone have all committed to carrying Windows Phone 7 Series handsets, according to Lees. Microsoft is working particularly closely with AT&T and Orange on implementing the new operating system in their phones, he added.

At the end of 2009, We can’t deny the fact that BlackBerry continued to hold the lead in mobile phone sales with 41.6%, followed by the iPhone with 25.3% and Microsoft came in third with 18% of the smartphone market share. Let’s see if Microsoft can beat Blackberry in terms of Mobile Phone sales.

Windows Phone 7 is pretty amazing. But it still has ten months before launch – and we’re going to see a bunch of competing upgrades between now and then. With iPhone 4, Symbian^3 and who-knows-what from Google appearing this summer and fall, the question isn’t whether WP7 is amazing for February 2010. It’s whether it will still be amazing in December.